Worthington Industries Inc (WOR)
Return on assets (ROA)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 96,053 | 110,624 | 256,528 | 379,386 | 723,795 |
| Total assets | US$ in thousands | 1,695,150 | 1,638,640 | 3,650,920 | 3,643,020 | 3,373,240 |
| ROA | 5.67% | 6.75% | 7.03% | 10.41% | 21.46% |
May 31, 2025 calculation
ROA = Net income ÷ Total assets
= $96,053K ÷ $1,695,150K
= 5.67%
The analysis of Worthington Industries Inc.'s return on assets (ROA) over the specified period reveals a pronounced declining trend. As of May 31, 2021, the company's ROA was notably high at 21.46%, indicating strong efficiency in generating profit from its assets. However, by May 31, 2022, ROA had decreased substantially to 10.41%, representing a significant reduction in asset profitability. This downward trajectory persisted into the subsequent years, with ROA declining to 7.03% on May 31, 2023, further diminishing to 6.75% by May 31, 2024, and reaching 5.67% on May 31, 2025.
This continual decline suggests a reduction in the company's overall asset efficiency and profitability over the analyzed time frame. Such a trend may reflect various underlying factors, including increased asset base without proportional income growth, operational challenges, or shifts in revenue and expense dynamics. It may also indicate evolving industry conditions or strategic changes within the company impacting overall profitability relative to assets employed.
Overall, the persistent decrease in ROA from 21.46% to 5.67% over four years reflects a noteworthy deterioration in asset utilization efficiency, which warrants further examination of the company’s operational and strategic adjustments during this period.
Peer comparison
May 31, 2025